Interim Results 2020 27 August 2020 Disclaimer Any forward-looking - - PowerPoint PPT Presentation

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Interim Results 2020

27 August 2020

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Any forward-looking statements made in this presentation have been made in good faith based on the information available as of the date of this presentation and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in these statements, and the company undertakes no obligation to update any such statements whether as a result of new information, future events or otherwise. Total Produce’s Annual Report contains and identifies important factors that could cause these developments or the company’s actual results to differ materially from those expressed or implied in these forward-looking statements. Alternative Performance Measures are defined in Appendix 3.

1 Total Produce | 2020 Interim Results

Disclaimer

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3 Key Highlights of H1 2020 4 Financial Highlights 5 COVID-19 and the Actions Taken 6 Segmental Analysis 7 Business Overview 8 Group Financials 13 Dole Financials 17 Sustainability Initiatives 22 Group Summary & Outlook 24 Appendix 1: Additional H1 2020 Financial Information 28 Appendix 2: Additional Dole Details 32 Appendix 3: Alternative Performance Measures (APM’s) 34 Contact Information

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Contents

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➢ Ongoing and unprecedented COVID-19 pandemic has had a significant impact on the global economy ➢ Very strong performance in H1 2020 ➢ Total Revenue up 2.0%, with increased wholesale and retail sales offsetting reduced demand from foodservice ➢ Adjusted EBITDA up 0.9%, driven by strong performance across all segments ➢ Reduction in Group net debt in the period ➢ Adjusted fully diluted EPS 9.45 cent per share (-3.6%)

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Key Highlights of H1 2020

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Total Revenue

€3.1bn

+2.0%

Adjusted EBITDA

€118.2m

+0.9%

Adjusted EBITA

€91.5m

(1.5%)

Adjusted PBT

€67.1m

+1.7%

Total Produce | 2020 Interim Results

Adjusted EPS

9.45c

(3.6%)

Net Debt

€218.8m

June 2019: €294.3m

Shareholders’ Funds

€463.2m

+2.7%

4

Interim Dividend

0.9129c

unchanged

Financial Highlights H1 2020

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➢ Group prioritised the health and wellbeing of its people with a range of measures implemented to protect employees ➢ Group played a vital role in keeping global supply chains open and continuing the supply of essential foodstuffs during the pandemic ▪ Dole’s integrated business model facilitated effective supply chain performance ➢ Focus on cash management and liquidity headroom ➢ Curtailment of discretionary operating expenses and deferment of non-essential capex ➢ Group’s strong presence in global fresh produce industry, the diversity of operations and products together with an exceptional response from its people, enabled the group to meet challenges

COVID-19 and the Actions Taken

5 Total Produce | 2020 Interim Results

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Total Produce | 2020 Interim Results 6

H1 2020 H1 20191 Revenue €’m EBITA €’m Revenue €’m EBITA €’m Europe – Non-Eurozone 770 21.6 752 23.0 Europe – Eurozone 855 12.5 832 10.9 International 618 11.1 605 8.9 Dole (Group’s 45% share) 903 46.3 891 50.0

• Inter-segment revenue

(34)

• (29)
• Total Group

3,112 91.5 3,051 92.8 ➢ Very strong performance, revenue +2.0% ▪ Sales remained steady ➢ Robust performance within Non-Eurozone with wholesale & retail offsetting lower foodservice ➢ Strong growth in wholesale within Eurozone ➢ Strong performance in International ➢ Robust trading within Dole

Segmental Analysis

1 Restated to conform with current year presentation

• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Jan Feb Mar Apr May Jun

Total Group YoY Revenue Momentum

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Company Overview

Total Produce is one of the world’s leading fresh produce providers

▪ Grows, sources, imports, packages, distributes and markets fresh produce ▪ Strong track record over the past ten years growing both

• rganically and by acquisition

▪ Transformational deal to acquire an initial 45% of Dole Food Company completed on 31 July 2018

2019 Revenue Breakdown2

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Geographical Presence

Number of facilities

Vegetables 28% Other fruit 42% Bananas 26% Pineapples 4%

Product

Europe 46% N America 47% Rest of World 7%

Geography

1 FY2019 including Group’s 45% share of Dole 2 FY2019 assuming 100% consolidation of Dole

Total Revenue1

€6.2bn

Adjusted EBITDA1

€203m

Operating Facilities

250

Countries

30+ 36

North America

93

Central & South America

9

Rest of World

112

Europe

Business Overview

Leading Worldwide Fresh Produce Company

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Group Financials

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Total Produce | 2020 Interim Results 9

H1 2020 H1 2019 % change Total Revenue €3,112m €3,051m +2.0% Adjusted EBITDA €118.2m €117.1m +0.9% Adjusted EBITA €91.5m €92.8m (1.5%) Adjusted profit before tax €67.1m €65.9m +1.7% Adjusted fully diluted EPS 9.45 cent 9.80 cent (3.6%) Interim dividend per share 0.9129 cent 0.9129 cent

• Financial Highlights

6 months ended 30 June 2020

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Total Produce | 2020 Interim Results 10

Cash Flow Statement

Financials

H1 2020 €’m H1 2019 €’m FY 2019 €’m LTM €’m Net debt at the beginning of the period (221.2) (219.7) (219.7) (294.3) Operating cash flow 33.1 30.7 52.8 55.2 Working capital movements (24.7) (62.2) 6.6 44.1 Operating cash flows after working capital movements 8.4 (31.5) 59.4 99.3 Routine capital expenditure (net) (8.6) (9.8) (19.0) (17.8) Dividends from joint ventures and associates 6.4 6.3 10.7 10.8 Dividends to non-controlling interests (5.1) (9.7) (16.1) (11.5) Total free cash flow 1.1 (44.7) 35.0 80.8 Acquisition expenditure, net of disposals (includes contingent consideration) 0.8 (16.7) (24.4) (6.9) Non-routine capital expenditure (1.3) (3.8) (4.5) (2.0) Dividends to equity shareholders

• (9.8)

(13.3) (3.5) Other, including translation movements 1.8 (1.2) 4.1 7.1 Finance leases reclassified from net debt to lease liability

• 1.6

1.6

• Movement in the period

2.4 (74.6) (1.5) 75.5 Net debt at the end of the period (218.8) (294.3) (221.2) (218.8)

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Total Produce | 2020 Interim Results 11

Liquidity Management

Financials

H1 2020 €’m H1 2019 €’m FY 2019 €’m

Net Debt (218.8) (294.3) (221.2)

➢ Cash generation of €33.1m in the period ➢ Continued strong working capital management ➢ Actions taken to mitigate cash outflows during H1: ▪ Non essential capital expenditure and discretionary

• perating costs curtailed

▪ Dividends to non-controlling interests deferred ➢ Increased Group borrowing capacity - increase in headroom and tenor ➢ Total committed and uncommitted facilities of €646m, approved overdrafts of €116m and cash of €131m ▪ 46% of available facilities utilised at 30 June 2020 ▪ Including cash, net facility utilisation 29%

324 373 337 350 632 643 623 646 104 104 109 116 102 79 116 131 100 200 300 400 500 600 700 800 900 1000 Gross Debt Total Facilities Gross Debt Total Facilities Gross Debt Total Facilities Gross Debt Total Facilities Dec-18 Jun-19 Dec-19 Jun-20

€'m

Facility Utilisation

Committed and Uncommitted Facilities Bank Overdraft Cash 838 826 848 893 Headroom €543m

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Total Produce | 2020 Interim Results 12

Balance Sheet

Financials

Jun-20 €’m Jun-19 €’m Dec-19 €’m Tangible assets and right of use assets 309.2 293.7 300.4 Intangible assets and goodwill 259.0 267.1 268.5 Dole joint venture 272.1 264.4 264.9 Other joint ventures, associates and investments 98.8 118.6 109.1 Working capital 29.3 70.3 7.6 Non-current receivables and payables (net) 25.0 26.8 21.3 Contingent consideration and provisions (15.6) (19.9) (16.8) Put option liability (26.4) (25.3) (26.6) Post-employment benefit schemes (net of deferred tax) (14.3) (14.6) (14.9) Corporation and deferred tax (ex. DT on pension) (25.5) (25.7) (22.3) Lease liability (IFRS 16) (130.7) (116.5) (120.1) Net debt (218.8) (294.3) (221.2) Net Assets 562.1 544.6 549.9 Shareholders’ equity 463.2 449.1 451.1 Non-controlling interests 98.9 95.5 98.8 Shareholders’ Equity & Non-Controlling Interests 562.1 544.6 549.9

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Dole Financials

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H1 20201 IFRS US$’m H1 20191 IFRS US$’m % change

Total Revenue 2,210 2,236 (1.2%) Adjusted EBITDA 153.4 161.0 (4.7%) Adjusted EBITA 118.8 130.3 (8.8%)

➢ Strong performance in H1 2020 ➢ Integrated business model allowed Dole to benefit from total control of its supply chain ➢ Earnings weighted towards first half of the year ➢ Fresh Fruit division remained strong and performed in line with H1 2019 ➢ Fresh Vegetables reduction in EBITDA compared to strong H1 2019

Dole Financials

6 months ended June 2020

1 First half results are for first six periods ended 13 June 2020 and comparative results are for first six periods ended 15 June 2019

* Group accounts for its 45% share of the results of Dole using the equity method as required by IFRS

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Total Produce | 2020 Interim Results 15

Dole Segmental Analysis

H1 20201 IFRS H1 20191 IFRS Revenue $’m EBITDA $’m Revenue $’m EBITDA $’m Fresh Fruit 1,646 142.8 1,668 141.9 Fresh Vegetables 564 21.0 568 28.7 Corporate

• (10.4)
• (9.6)

Total 2,210 153.4 2,236 161.0 ➢ Dole performed strongly in H1 2020 ➢ Positive sales momentum in Q2 ➢ Retail focused business, c.90% of sales ➢ Fresh Fruit growth driven by strong demand ➢ Fresh Vegetables performed well against strong comparative period

6 months ended June 2020

1 First half results are for first six periods ended 13 June 2020 and comparative results are for first six periods ended 15 June 2019

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Total Produce | 2020 Interim Results 16

As at June 2020 (IFRS)

Jun-20 US$’m Jun-19 US$’m Dec-19 US$’m Property, plant and equipment & Right-of-use assets 1,325 1,313 1,348 Intangible assets (mainly brands) 285 286 286 Goodwill 220 220 220 Assets held for sale / Actively marketed property 61 80 65 Other non-current assets 109 119 107 Net current assets 248 287 245 Post-employment benefit schemes (190) (187) (175) Lease liability (IFRS 16) (257) (303) (294) Other non-current liabilities (236) (259) (239) Net debt (1,269) (1,271) (1,287) Net Assets 296 285 276

Dole Financial Position

Valuable Asset Base

Source: Internal data

➢ Further reduction in net debt in H1 2020 to US$1,269m ➢ Total assets of c.$3.0bn ➢ Good cash management in the period ▪ Curtailment of non-essential capital expenditure and discretionary costs ➢ Long maturity profile for Dole bond and term loan

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Sustainability Initiatives

Let’s Grow Together

Total Produce | 2020 Interim Results

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18 Total Produce | 2020 Interim Results

Sustainability – Solid Foundations

A Strong Platform For Our Ongoing Sustainability Journey

UN Sustainable Development Goals The Most Nutritious & Sustainable Of Foods

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19 Total Produce | 2020 Interim Results

An Evolved Sustainability Reporting Structure

ESG: Strategy Stakeholder

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Achievements & Accomplishments

Measurement and Management Across Our Operations

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Total Produce | 2020 Interim Results 21

Recent Developments

➢ Recent Reporting

▪ Launch of Total Produce Plc Sustainability Website: www.totalproduce.com/sustainability ▪ Publication of Total Produce Plc, Dole Food Company and Total Produce Nordic Sustainability Reports ▪ Setting out structures, current actions and future targets

➢ Energy

▪ 18% Reduction in group-wide energy consumption in 2019 ▪ 38% Reduction in energy consumption across Irish operations ▪ 1,800 solar panels installed in Argofruta Petrolina packing centre in Brazil - generating 85%

• f the facility’s energy requirements

➢ Water

▪ First group-wide calculation of our collective Water Footprint for 2019 ▪ First water submission to the Carbon Disclosure Project ▪ Total Produce Plc joins the Alliance for Water Stewardship

Ongoing Momentum in Sustainability Initiatives

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Group Summary & Outlook

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➢ Very strong performance in H1 2020 against backdrop of ongoing COVID-19 pandemic ➢ H1 Total Revenue +2.0%, increased wholesale and retail sales offsetting reduced foodservice demand, with trend continuing into H2 ➢ Adjusted EBITDA increased 0.9%, strong performance in all divisions ➢ Continued strategic focus on sustainability; first sustainability report released in June 2020 ➢ Payment of final 2019 dividend of 2.577 cent per share on 2 September subject to shareholder approval at AGM ➢ Interim dividend unchanged at 0.9129 cent per share, to be paid in January 2021 ➢ The Group expects revenue and adjusted EBITDA to be slightly ahead of 2019 on a full year basis with adjusted EPS slightly behind, subject to the prevailing uncertainties of COVID-19 ➢ The Group remains in a very strong financial position and continues to actively pursue the growth and expansion of the business

Group Summary & Outlook

23 Total Produce | 2020 Interim Results

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Total Produce | 2020 Interim Results 24

Appendix 1

Additional H1 2020 Group Financial Information

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Total Produce | 2020 Interim Results 25

Financials

H1 2020 €’m H1 2019 €’m FY 2019 €’m Total Revenue 3,112 3,051 6,173 Adjusted EBITA 91.5 92.8 150.1

Intangible asset amortisation (including share of JV & Associates) (6.5) (6.3) (12.9) Share of JV & Associates tax and interest charges (32.4) (35.1) (54.9) Acquisition costs & FV movements on contingent consideration 0.3 1.0

• Operating profit before exceptional items

52.9 52.4 82.3 Exceptional items (5.2) 8.4 5.2 Operating profit after exceptional items 47.7 60.8 87.5 Net financial expense (5.1) (5.5) (11.0) Profit before tax 42.6 55.3 76.5 Tax (8.4) (5.6) (10.3) Profit after tax 34.2 49.7 66.2

Statutory Income Statement

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Total Produce | 2020 Interim Results 26

Financials

H1 2020 €’m H1 2019 €’m FY 2019 €’m Gain/(loss) on disposal of investment

• 1.4

(0.7) Restructuring costs and costs associated with termination of business (0.3)

• (1.1)

Share of exceptional items within Dole (net of tax) (3.8) 7.0 7.0 Impairment of property, plant and equipment (1.1)

• Total exceptional items

(5.2) 8.4 5.2 Net tax charge on exceptional items (1.0) 0.3

• Total exceptional items, net of tax

(6.2) 8.7 5.2

Exceptional Items

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Revenue (€’m) Adjusted EBITDA (€’m)

Total Produce | 2020 Interim Results 27

Dividend (€’cent) Adjusted EPS (€’cent)

3,454 3,762 4,286 5,043 6,173 2015 2016 2017 2018 2019 82.8 94.8 104.4 133.3 202.8 2015 2016 2017 2018 2019 2.7630 3.0393 3.3433 3.4269 3.4899 2015 2016 2017 2018 2019 10.58 12.07 13.48 10.51 14.12 2015 2016 2017 2018 2019

2015 – 2019 CAGR 15.6% 2015 – 2019 CAGR 25.1% 2015 – 2019 CAGR 6.0% 2015 – 2019 CAGR 7.5%

5 Year Summary (2015 – 2019)

12018 includes contribution from Dole and impact of 63 million share placing on 1 February 2018 22019 reflects adoption of IFRS 16 lease accounting standard 2 1

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Appendix 2

Additional Dole Details

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All figures prepared in accordance with IFRS H1 2020 US$’m H1 2019 US$’m FY 2019 US$’m Operating profit 118.8 130.3 173.8 Net financial expense (44.6) (51.1) (97.6) Profit before tax and exceptional items 74.2 79.2 76.2 Income tax (28.9) (31.3) (25.5) Non-controlling interests (1.5) (1.2) (2.2) Profit before exceptional items attributable to equity shareholders 43.8 46.7 48.5 TP 45% share of adjusted earnings attributable to equity shareholders 19.7 21.0 21.8 Exceptional items (11.9) 15.6 13.8 Income tax on exceptional items 2.3 2.0 3.8 Exceptional items, net of tax (9.6) 17.6 17.6 Profit attributable to equity shareholders 34.2 64.3 66.1

Dole Financials

Summary Income Statement (IFRS) for period ended June 2020

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Total Produce | 2020 Interim Results 30

Source: Internal data Note: % of revenue figures exclude revenues from Swedish fresh fruit procurement and distribution operation and are based on 2018 financial information

Revenue

7%

Boxes sold annually

30+m

Production acres

31,600

Diverse sourcing platform

3

countries

Total retail volume sold under contract

50%

North America

Pineapples

Revenue

44%

Boxes sold annually

140+m

Production acres

55,700

Diverse sourcing platform

7

countries Bananas

North America for both conventional and organic bananas

#1

Market share Total retail volume sold under contract

90%

North America 69% Europe

#2 North America for conventional pineapples and #3 in Europe

#2

Market share

#3

Fresh Vegetables Diversified Fruit

Value Added:

Revenue

18%

New value-added branded products launched in North America in 2018

22

#2

Market share

#3

#3 Market share in North America value-added vegetables & #1 in the chopped salad kit

Fresh Packed:

Revenue

6%

Number of different conventional & organic fresh vegetables items in the portfolio

20+

Revenue

19%

Boxes sold annually

c.40m

Includes all non-tropical fruit with operations in Chile, South Africa, Argentina and Peru

Market share

#1

#1 worldwide exporter of table grapes

One of the leading marketers

• f apples in the Southern

Hemisphere

28% volume growth since 2012 41% volume growth since 2012

Diversified Revenue Base

Bananas and Pineapples Experiencing Solid Growth

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Transaction Structure Provides Significant Governance and Flexibility

Total Produce | 2020 Interim Results

➢ Acquisition of 45% of Dole from Mr. David H. Murdock for a cash consideration of $300m (the ‘First Tranche’) completed on 31 July 2018 ➢ Total Produce has option to acquire (in any one or more tranches of 1%) up to an additional 6% of Dole for a payment of $2m for each 1% (the ‘Second Tranche’), payable in cash ➢ Following the second anniversary of the First Tranche, Total Produce has the option to acquire the balance

• f Dole (the ‘Third Tranche’)

– Third Tranche purchase price calculated based on nine times three year average EBITDA less net debt – Third Tranche purchase price not to be less than $250m or exceed $450m – Payable in cash or Total Produce stock ➢ Following the fifth anniversary of the First Tranche, if Total Produce has not exercised its right to acquire the Third Tranche, Mr. Murdock is permitted to cause a process to market and sell 100% of Dole ➢ Includes price protection mechanism in favour of Total Produce around proceeds from sale ➢ Board of Directors comprises six members, three appointed by Total Produce and three appointed by Mr. David H. Murdock ➢ Mr. Murdock to be Chairman, Carl McCann to be Vice Chairman ➢ Each of the Board committees to include at least one Total Produce Appointee and one Murdock Appointee ➢ Major decisions will require consent of at least one Total Produce Appointee and one Murdock Appointee

Second and Third Tranches Liquidity Event Governance First Tranche

Note: Statements with respect to the transaction are forward-looking statements. See disclaimer regarding forward-looking statements on page 1

1 Shares acquired in DFC Holdings LLC, of which Dole is a wholly owned subsidiary

31

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Appendix 3

APMs (Alternative Performance Measures)

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Alternative Performance Measures

The Group uses a number of Alternative Performance Measures (APMs), which are non-IFRS measures to monitor financial performance. These are the measures which are regularly reviewed by Group management to monitor performance of its operations. The principal APMs used by the Group are defined as follows: ➢ Total revenue includes the Group’s share of the revenue of its joint ventures and associates. ➢ Adjusted EBITDA is earnings before interest, tax, depreciation on property, plant and equipment, acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration, unrealised gains or losses on derivative financial instruments, gains and losses on foreign currency denominated intercompany borrowings and exceptional items. It also excludes the Group’s share of these items within joint ventures and associates. ➢ Adjusted EBITDA (after add back of right-of-use asset depreciation) is earnings before interest, tax, depreciation on property, plant and equipment, depreciation on right-of-use assets, acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration, unrealised gains or losses on derivative financial instruments, gains and losses on foreign currency denominated intercompany borrowings and exceptional items. It also excludes the Group’s share of these items within joint ventures and associates. ➢ Adjusted EBITA is earnings before interest, tax, acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration, unrealised gains or losses on derivative financial instruments, gains and losses on foreign currency denominated intercompany borrowings and exceptional items. ➢ Adjusted profit before tax excludes acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration, unrealised gains or losses on derivative financial instruments, gains and losses on foreign currency denominated intercompany borrowings and exceptional items. ➢ Adjusted fully diluted earnings per share excludes acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration, unrealised gains or losses on derivative financial instruments, gains and losses on foreign currency denominated intercompany borrowings, exceptional items and related tax on such items. It also excludes the Group’s share of these items within joint ventures and associates. ➢ Net debt represents the net total of current and non-current borrowings and cash and cash equivalents as presented in the Consolidated Group Balance Sheet. It excludes lease liabilities.

Alternative Performance Measures

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For further information please contact:

Frank Davis Finance Director fdavis@totalproduce.com; +353 1 887 2721 August 2020